I am a british citizen living in Israel for the last 30 years. (I am an Israeli citizen).
I have never lived or worked in the United States.
My father recently passed away in the States, (he was an american citizen).
My sister and I have been left a small IRA fund. We are the beneficiaries of this fund and the company is now workiing on splitting the fund into two separate accounts (my sister and I)
We are trying to find out the following with little luck!

1. we understand a distribution has to be taken out yearly, but don't understand how to file with the IRS, if we have to file with the IRS and how much we will be taxed?
2. I am not sure if this is correct but I understand we have three options;
a) take yearly distributions
b) don't take distributions for 5 years and then take out the full amount (how much tax would this include)
c) take out the money now (how much tax would I have to pay if I don't work there or live there or anything else there)

This is not a very large sum of money but money I really do need now...
If anyone could give me details of IRS, IRA, Vanguard, Israeli/US tax laws I would be very very appreciative.